If It's Not in Writing, You’re At a Disadvantage

Important agreements, like two people agreeing that each person or business does something must be in writing to be enforceable. This includes any document that says you or someone else needs to do something like buying, selling, or exchanging items or services. A few examples are below. 

• Buying or Selling a Vehicle: Always get a bill of sale (in addition to the title) showing the date of the sale, the people involved, the identifying information about the vehicle, the amount paid, and dated signatures of the people involved.  See attached samples below:

• Home Repairs: If you want to have your home rebuilt or remodeled, you need a written contract that outlines what work will be done and when. 
• Rental Agreements: If someone or a business allows you to stay in a place they own, you need a rental agreement. If you’re staying in a family member’s home, get a document that states your right to stay. Sample rental agreements can be found in this Tenant/Landlord Guide. 
• Residential Arrangements (not rental):  If you are living on property that you have sold or given to family members and yet you (and your spouse) still live on the property, you need language in a deed or otherwise saying you (and your spouse) can live there until you die.

Memories Fade: Regardless of your age, no one can remember details perfectly. 

Legal Requirements: In court, you need documents to prove an agreement exists. If there’s a dispute (like who owns a car or house), just saying it isn’t enough. You need a document to show to the court.

Understanding Agreements: Courts need to see the "full intention of the parties" to enforce a contract or agreement. So, if a person or business cannot identify a written document showing the agreement, a court will not know what was agreed upon. That puts the person or business at a disadvantage.

People who do not have written documents are often left without legal recourse. If you don't have written documents, it can be much harder to get help if something goes wrong. 

Some transactions are simple yet require a written document. For example, you need a receipt to return something to a grocery or clothing store. The concept is the same for more complicated situations like buying a vehicle, hiring someone to work on your home, or renting a home. As mentioned before, these transactions must be in writing to be enforceable in court. 

People often trust others, even friends or family, which can backfire. Trust should never replace the need for a written agreement.

Some businesses will not give you a printed receipt unless you ask for one.  Before leaving the business, think about the importance of the meeting, the agreement, and the purchase.  For example, you may never need a receipt for something you're going to eat right away.  But you should ask for a copy of what you signed at the doctor's office to know what you agreed to pay for if the insurance (including Medicare and Medicaid) doesn't cover it.  Demand something in writing that shows what just happened if there is any possibility that you might need to review the visit, review the purchase, or return an item.

This article is supported by the Administration for Community Living (ACL), U.S. Department of Health and Human Services (HHS) as part of a financial assistance award totaling $338,450 with 75 percentage funding by ACL/HHS and $88,537 and 25 percentage funded by non-federal government source(s). The contents are those of the author(s) and do not necessarily represent the official views of, nor an endorsement, by ACL/HHS, or the U.S. Government.